Many people consider innovation and invention to be synonymous. Strategic discussions between retailers and suppliers of “consumer packaged goods” (CPGs) often include conversations about the importance of product innovation. While these companies realize they must innovate to remain relevant, their management may hesitate to implement the necessary change, especially if they have been conditioned to think more like “operators” than innovators. On the other hand, inventors are naturals at visualizing new products but often not so good at imagining how they will fit into the market or fare against competing products. The notion that innovation is invention is a myth that may keep you busy talking about your concept without ever implementing it.
Innovation starts with creativity. But, creativity has two parts to it. We all know it involves the development of a new idea. What many may miss is that this new idea must also be more useful than the alternative method or competing product. We must see innovation not as creating a new product but as…
creating new and better experiences for the consumer.
So, where do these new and useful product ideas come from? Ultimately from the people who benefit from using them. The consumer will tell us how to make better products if we will only listen to what they have to say. However, BEWARE. Consumers think not in terms of product features, but in terms of experiences. My wife cannot tell me about voice recognition and search technologies, but she will often say with great anticipation, “let’s ask Siri.”
One of the greatest mistakes in the history of the CPG industry was the reformulation of Coca-Cola (New Coke). For a brief period in 1985, some otherwise very smart CPG professionals thought “winning” was only about product features, until their loyal consumer-base revolted against the new, but NOT better “experience”.
Listening to consumers starts with busting the next myth, “Retail markets are about selling products.”
NOT so.
Stay tuned
You can get more Double Bottom Line insights from Dr Caldwell’s book ‘Winning in a Hostile Environment’ available through amazon.com or you can have him personally come share these insights with your team. He can be reached at dblinsights@gmail.com or 864-907-2052